Is Rising Inflation About To Hit U.S. Economy In Big Way?

Inflation seems to be a thing of the past… but current trading in bond and commodity markets tell us that it could become a thing of the future!

Inflation hasn’t been an issue, or even on our radar, since the 1980s. Sure, the 2007 surge in oil prices offered some concern but the financial crisis killed any thoughts of inflation.

So what’s got us concerned about inflation in 2021?

Today we take a look at long-term charts of two potential inflation indicators: Crude Oil and 10-Year Bond Yields (interest rates). Both have been mired in longer-term downtrends BUT both have rallied sharply higher of late.

A multi-year resistance/breakout test is in play for Crude Oil and Bond Yields at the same time at (1).

As most of you know, inflation themed investments have done well in 2021. If breakouts take place here, they should do very well going forward. And perhaps it would be a strong signal that inflation is real again. Stay tuned!

Crude Oil vs 10 Year Treasury Bond Yield Chart

inflation correlation higher bond yields crude oil indicator signal chart february year 2021

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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